WORKFORCE, AFFORDABLE HOUSING & BUSINESS ENABLERS
BUSINESS ENABLERS INSURANCE The Townsville North Queensland region contributes to around $20 billion to the national GDP and yet we are required to operate commercially and within our domestic lives without accessible banking and affordable insurance services. We have reached the point of ‘Market Failure’ leaving significant sectors of the economy, residents and small businesses exposed to no sufficient and/or affordable insurance in Northern Australia. Access to insurance is imperative for the Townsville North Queensland region to reach its full economic potential and essential to building resilient communities.
Other major weather events, such as the 2019 Floods would not be covered by the Pool. Townsville Enterprise recommends: The current Pool to be reallocated to fund a governmentbacked insurance body – like the Territory Insurance Office Extend the Pool claim coverage to include flooding events. The Pool needs to incentivise insurance providers to re-enter the market in Northern Australia.
The $10 billion reinsurance pool was a significant announcement with the potential to be a real solution to a decade-long problem of rising and unaffordable insurance. Since the Pool has been operational, none of the 14 insurance providers operating in Northern Australia are participating in the Pool to date. The proposed benefits for consumers will continue to be delayed as insurers are not required to join the Pool until December 2023 for larger insurers and December 2024 for smaller insurers. Insurance has been cited as a major hurdle for developers due to the difficulty in obtaining insurance and the costs which have been found to be more than 20% higher than in Brisbane. This comes at a time with the current housing crisis resulting in outcry from the public and businesses to resolve this issue. Another concern is the claims period. As the Pool only covers claims within the 48-hour period after the cyclone has been downgraded and would not cover ongoing damage sustained by the cyclone once it has weakened to a low-pressure system.
OUR SUBMISSION TO TREASURY
OUR SUBMISSION TO THE JOINT SELECT COMMITTEE FOR NORTHERN AUSTRALIA
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TOWNSVILLE NORTH QUEENSLAND
OUR SUBMISSION TO THE AUSTRALIAN SMALL BUSINESS AND FAMILY ENTERPRISE OMBUDSMAN
